KyberSwap Exploit: Vulnerability Leads to $48.8 Million Loss
An exploit on KyberSwap occurred on November 22 due to a vulnerability in the tick interval boundaries of its concentrated liquidity pools. This allowed an individual to artificially double the liquidity and drain value, resulting in a loss of $48.8 million.
KyberSwap initially reported that $47 million had been taken, but later confirmed the higher amount. In an effort to negotiate with the hacker, Kyber offered a 10% white hat bounty as a reward for returning the funds. However, the hacker rejected the offer and made other demands, including requesting complete control over the project.
Separately, the Kyber team managed to recover $4.7 million in funds that were drained by third-party MEV bots during the hack.
About the Author
MK Manoylov has been a reporter for The Block since 2020. With a focus on NFTs, metaverse, web3 gaming, funding, crime, hacks, and crypto ecosystem stories, MK has written nearly 1,000 articles for the publication. MK holds a graduate degree from New York University’s Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. Follow MK on Twitter @MManoylov and on LinkedIn.
Hot Take: Security Breach Exposes Vulnerabilities in KyberSwap
A recent security breach at KyberSwap has highlighted vulnerabilities within its concentrated liquidity pools. The exploit resulted in a substantial loss of $48.8 million for the platform. Despite offering a 10% white hat bounty as an attempt to negotiate with the hacker, the demands made by the hacker were unreasonable, including a request for complete control over the project.
While KyberSwap managed to recover $4.7 million of the funds taken by third-party MEV bots, this incident emphasizes the need for robust security measures in the crypto industry. It serves as a reminder for platforms and users alike to remain vigilant and implement stringent protocols to safeguard against potential exploits and attacks.
Theon Barrett shines as a distinguished crypto analyst, accomplished researcher, and skilled editor, making significant strides in the field of cryptocurrency. With an astute analytical approach, Theon brings clarity to intricate crypto landscapes, offering insights that resonate with a broad audience. His research prowess goes hand in hand with his editorial finesse, allowing him to distill complex information into accessible formats.